An easy way to increase your cash flow

increase-your-cash-flow

Having a great relationship with your property manager can be a great way to increase your cash flow. It’s critical that a property investor maintains an enough cash flow to withstand the ups and downs of property investing. The ability to survive interest rate fluctuations and unforeseen costs is something that all good investors have.

Two years ago, interest rates were rising rapidly and my income wasn’t. I had considered fixing interest rates so that I wouldn’t be forced to sell a property. Before I did anything too drastic, I contacted my property managers and asked for appraisals on each of my properties. I discovered I was able to increase the rent to the point where I could withstand just one more interest rate rise. The little bit of time that I bought was enough time for the market to completely change and for interest rates to plummet. This meant that I didn’t fix my interest rates at 9.5% and now I found myself paying just under 5%.

The lesson to be learned here is that keeping good relationships your property managers can pay off, both financially and for your own peace of mind.

If you’re happy with your property manager, terminate the relationship. It’s easier than you think. If you are ask them if there’s anything you’re not doing that could increase your cash flow. You may receive some good news.

And we all like hearing good news sometimes.

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